Missouri Patent of the Month – January 2025
In the fast-paced world of financial markets, where milliseconds—or even microseconds—can mean the difference between profit and loss, Exegy has pioneered a groundbreaking invention that redefines low-latency automated trading. At its core, this innovation is an apparatus and method designed to execute trading strategies with unparalleled speed and precision, leveraging parallelized computational resources to process vast streams of market data in real time. By integrating streaming derivatives market data, underlying market data, pricing parameters, and configuration parameters, Exegy’s invention enables traders to make informed decisions at lightning speed, ensuring they stay ahead of the competition.
The invention’s architecture is built around a highly efficient automated trading engine, implemented on hardware such as FPGAs, ASICs, or GPUs. These parallelized logic resources are divided into specialized components: the first processes streaming market data to generate triggers based on price changes, the second computes theoretical prices for derivatives using non-iterative, feed-forward logic, and the third determines whether to generate orders or quotes based on predefined conditions. This modular, parallelized approach ensures that the system can handle millions of messages per second while achieving tick-to-trade latencies as low as 50 nanoseconds.
What sets Exegy’s invention apart is its ability to adapt to various market-making strategies, including basic, joining, and bettering strategies. By dynamically adjusting quotes based on theoretical prices and exclusion boundaries, the system ensures optimal pricing while minimizing risk. Furthermore, the invention’s ability to prioritize and schedule quote transmissions based on real-time market conditions and venue-specific constraints highlights its sophistication and practicality.
Exegy’s invention is not just a technological marvel; it’s a game-changer for the financial industry. By combining cutting-edge hardware, advanced algorithms, and a deep understanding of market dynamics, this innovation empowers traders to operate at the speed of thought, transforming the way financial markets function.
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